Item 12 Contract to Cherry Bekaert Advisory LLC for Governmental Accounting Standards Board

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Cherry `� Bekaert Proposal for City of Santa Ana b. Services Provided A description of proposed services to be provided and how they meet the needs of the City as described in Exhibit I - Scope of Services. Cherry Bekaert will provide the City with a comprehensive, efficient approach in the implementation of GASB 101 and ongoing support for GASB 87 and 96. Our methodology takes our clients from a limited understanding of the pronouncement to having journal entries, disclosures and go -forward training in four streamlined steps. Your engagement will generally follow the framework summarized below and detailed in the Proposed Work Plan. Throughout the engagement we will have weekly status meetings where we go over our joint accountability tool, which provides visibility to all parties on tasks that are being worked on, responsible parties, committed due dates, and detailed action items for each of the next two (2) weeks of the project. Based on our unique structure as a national team focused solely on governmental accounting projects, we can scale up as quickly as any other firm in the country. Understanding For GASBs 87 and 96, this phase includes requesting contracts, evaluating the current state of the Statement SBITA and leases in DebtBook, and reviewing working papers. For GASB 101, this involves conducting interviews with responsible parties, requesting initial PBC lists, evaluating prior compensated absences balances, and reviewing working papers. We will deliver customized training to your implementation team to ensure they understand the standard and to promote effective communication and information gathering during the project's early stages. Additionally, we will hold collaborative sessions to break down the scope of work into specific tasks, assigning responsible parties and setting due dates. Completeness For GASBs 87 and 96, this phase includes gathering contracts, reviewing for the presences of a and lease or SBITA, and gathering data inputs for entry into DebtBook. Additionally, this phase will Implementation include assistance with lease or SBITA termination or renewal options during the year and Documentation assistance with lease or SBITA modifications or revisions during the year. For GASB 101, we will capture the different leave types offered by the City for further evaluation under GASB 101. This may include a review of your policies, payroll register, and trial balance to identify all potential compensated absences. We conduct walkthroughs with your HR and Payroll departments to ensure a comprehensive listing of compensated absences. The gathered information is then populated into a customized spreadsheet for your review and acceptance. Policies and For GASB 87 and 96, we will evaluate your current policies and procedures for leases and Procedures SBITAs to ensure a consistent approach is used for any management determinations. For GASB 101, we will evaluate the current processes and controls around accounting for compensated absences and provide recommendations for improvement. We also assess the clarity of your policies and procedures, offering suggestions to enhance them. If the approach for calculating compensated absences liability is not already defined or needs to be updated based on GASB 101, we assist in determining the appropriate method. We document the implementation year and ongoing policies and procedures to ensure completeness and accurate information capture. Entries, For GASB 87 and 96, this phase will include the preparation of lease and SBITA journal entries Disclosure, and and disclosures. For GASB 101, this phase includes the preparation and calculation of GASB Go Forward 101 compensated absences liability based on the steps described above. We will help with complex leave calculations and prepare the necessary journal entries, ensuring consistency. We also assist with preparing and reviewing the required disclosures. To wrap up the implementation, we conduct final training sessions to prepare you for handling GASB 101 requirements going forward. Our team members have been providing training sessions on GASB 101 since late 2022. Danny Martinez, proposed engagement partner, will lead these sessions; Danny has presented on GASB 101 at the National Government Finance Officers Association conference and is also presenting at the upcoming National Association of State Controllers Conference. Our team includes two (2) members who previously served at GASB, including senior associate Bailee Steinle, who was at GASB while 101 was being finalized. 3